The supermarket giant wants to build a massive new store on the old foundry site in Fareham, near the Quay Street roundabout.
But before those plans are considered it wants councillors to agree to dozens of affordable homes on the site.
Tesco wants up to 55 new properties and will seek permission from Fareham Borough Council planning committee on Tuesday. Council planning officers have recommended granting permission. The application for the store may be decided in July.
Access to the homes will be through what is currently a council car park at the end of Bath Lane, a cul-de-sac. Twenty parking spaces will be lost from the 50 there to create a new access road.
Brenda Clapperton, of the Fareham Society, said the society had concerns about safety and access at the site, but it realised it is unlikely the application will be turned down.
'It's not the sort of road you would have thought they would use as a thoroughfare,' she said. 'It's used by a lot of pedestrians, especially school children.
'And that car park is very well used, so the reduction of spaces is not the best thing that could happen either.'
No objections have been raised to the proposals from any of the statutory bodies contacted by the council.
But seven objections have been received from residents, mostly over traffic and parking problems.
Melanie Chiswell, Tesco's corporate affairs manager, said next week's planning meeting was only to decide the number of properties on the site, which would be built by a separate developer.

The full article contains 289 words and appears in NS-City newspaper.